The 1 Tech Stock I'd Buy With My Eyes Closed at This Price

If there is one tech stock I'd buy with my eyes closed right now, it is Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). The reason why is quite simple: It now has what other top artificial intelligence (AI) companies want. Meaning it has the most complete AI stack, combining some of the best AI hardware, software, cybersecurity, distribution, and AI models.

You just need to listen to competitors to understand Alphabet's position and why competitors are starting to chase it. Amazon recently opined about how the use of custom AI chips could give it an advantage in developing a top AI model at a fraction of the cost of competitors. That is something Alphabet is already doing by training its world-class Gemini models using its tensor processing units (TPUs).

Meanwhile, Nvidia is looking to break away from just chips and hardware, saying its NemoClaw platform could become as big as ChatGPT. Alphabet already has a top-of-the-line large language model (LLM) that has been taking market share away from ChatGPT, and Nvidia's Agent Development Kit and recent acquisition of Wiz set it up to become a secure agentic AI leader.

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At the same time, the troubles that Meta Platforms has had in both designing its own custom AI chips and developing an AI model on par with Gemini, Anthropic's Claude, and OpenAI's ChatGPT demonstrate Alphabet's rarified position. Other companies have designed their own custom chips, but Alphabet's TPUs are on their seventh generation, and its entire ecosystem has been optimized for its chips, giving it a big structural advantage that puts it years ahead of the competition.

The leader in consumer AI

Alphabet's expansive ad network and strong distribution network -- through its ownership of web browser Chrome, the Android smartphone operating systems, and a revenue-sharing deal with Apple -- have also led it to much more effectively monetize the consumer market than competitors.

In fact, according to The Wall Street Journal, OpenAI is planning to pivot its strategy more toward enterprise customers and coding tools and away from the consumer market. This shift by OpenAI should firmly position Alphabet as the leader in the consumer AI space in terms of revenue generation, and let it continue to take more share over time.

Overall, Alphabet has the most complete AI tech stack and multiple AI revenue streams. The company is seeing rapid cloud computing growth, and it is now starting to let customers use its TPUs, adding another revenue stream. Meanwhile, it's incorporated its Gemini model throughout its search platform, which is helping propel query growth and increase revenue. All of these moves position Alphabet to be a long-term AI leader and the one AI stock I'd buy with no hesitation.

Geoffrey Seiler has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, and Nvidia and is short shares of Apple. The Motley Fool has a disclosure policy.